Are retail market principles a threat to today’s brand effectiveness?
The paper starts with examples from H&M, Zara and Esprit who have obtained sustainable results by controlling the whole value chain. In today’s consumer markets traditional retail principles no longer seem to be a reply to success activities and therefore manufacturers are looking for better ways to manage their way to consumers. It is for this reason that BCG carried out a detailed survey where they studied different ways of integration. The study includes the different types, risks and advantages. The paper presents its highlights. It is true that today’s retail market faces a different situation being in between specialty shops and discounts. Retailers find it difficult to manage the quantity of products and how to increase the quality of communication towards the manufacturer. As a result, the manufacturer faces a risk regarding its brand effectiveness, precisely the part that is so important to him and often transmitted by a large part though the retailer.
